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August 12, 2008
Operating results of Slavutich, Carlsberg Group in the first half of 2008

  • Sales by volume: 4,140 thousand hectoliters, +40% to the similar period in 2007. 
  • Sales volume by value: 223 million USD, +68% 
  • Profit before interest, taxes, and amortization (EBITDA): 22 million USD, +67% 
  • Operating profit: +4 million USD

During the first half-year of 2008 the company is demonstrating good dynamics of progress in spite of general tendency of slowing down of the beer market growth. Statistics of the first half-year do not reflect the situation at the beer market at full, as far as they demonstrate results of performance during the favourable for beer sector "seasonal period". The traditional "season" in 2008 happened to be not as good for the beer companies as in previous years due to the rainy and chilly summer.

In 2008 the rise of prices on the main raw materials and components has significantly exceeded all the forecasts. For example, the price of malt has grown by 75%, the price of glass has grown by 44%, and the price of can — by 17%, the cost of electricity has grown by 38% and the cost of gas — by 37%. With reference to significant rise in prices for the main components and high inflation the beer companies had to raise prices for their products. In average the cost of beer in the first half-year has increased by 19% (per litre).

Unfavourable conjuncture at the raw materials market, inflation, growth of tariffs will have a negative impact on the year's results; they will also result in a slowdown of the beer market growth in 2008.

In 2009 the beer industry is anticipating the significant increase of excises, incommensurable with the rate of inflation — and that will also become one of the reasons of beer market cutback.


Sales growth of the company in the first half of 2008 made up +37% while the market growth was +9%. Following the results of half-year the company's share of the market has grown by 3.2% and totals now 23.5%.

In June 2008 the RTM trend of the company's beer sales for the previous 12 months (from July 2007 to June 2008) for the first time in history of the company has surpassed the level of 7 million hectolitres (700 million litres). RTM (Rolling Twelve Month) is an indicator that levels out seasonal deflections and represents total sales of production for 12 months. In 2006 this trend for the similar period totalled 4.3 million hl (430 million litres). Before the relaunch of TM "Slavutich" RTM trend of sales of the company was at the most 4.4 million hl (440 million litres).

During the first six months of the current year the sales of the main brand of the company TM "Slavutich" increased by 100% (nonmetering export) due to the successfulrelaunch of TM "Slavutich" in 2007 and also as a result of promo campagne "Money under the Cap", which started in May of the current year. Half-year results showed that the "Slavutich" brand ranks third position at the Ukrainian beer market, its share totalling 8%. But it must be mentioned that the data growth of TM "Slavutich" for the first half-year of 2007 leave out of account the fact that relaunch of the brand was carried out only in the second quarter of 2007. 

In June 2008 the company successfully launched production of two new sub-brands of TM "Slavutich ICE" — "ICE Mix" with green lime flavour and "ICE Mix" with a flavor of red-pipe cherry at the fruit flavoured beer segment — a new one for the company.

At the end of the first half-year the sales volume of "Tuborg", a leader of the premium segment, increased by 16.7%. Due to this the brand's share in its segment reached 49%. In April the company started production of two sub-brands of "Tuborg" — "Twist" and "Black". The launch of the new products was peculiar due to unconventional communicational strategy. A kind of duel was proposed — according to the results of the consumers' voting only one product would remain in the market. Since the launch the sub-brands' share has made up 16.6% from the total sales volume of "Tuborg".

In the first half of 2008 the sales growth of the brand "Baltika", which takes the first position in the sub-premium segment, has made up 38% and its share is 35%.

Excellent dynamics is also observed in other licensed brands of the company: growth of "Carlsberg" made up +30%, "Holsten" grows at the level of other premium types.

The brands of the low-price segment "Lvivske" and TM "Arsenal" show a positive dynamics of growth in the first half-year in spite of the reduction of the sales volume in the segment. The sales growth of "Lvivske", a leader on the market of the west region, made up 15%, the growth of "Arsenal" is 24% since the beginning of the year.

In May 2008 the company has started the production of the totally new product — "Kvas Taras". The first kvas filling took place in Kyiv Slavutich Brewery at the end of May. At present "Kvas Taras" is produced at Lvivska brewery either. Together with the launch of "Kvas Taras" the company "Slavutich" has started the development of new non-beer direction.


In the first half of 2008 an average net price per liter of the company's products increased by +23.6% comparable with 2007.


In the first half of 2008 the export grew by 1.6 times comparable with the same period in 2007.

Financial performance

The financial highlights of the company's operating results in the first half of 2008 (according to the financial statement, compiled by the standards of IFRS — International Financial Reporting Standards).



1st half of 2008

1st half of 2007

Changes in 2008/2007, %

Sales volume

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Net revenue from sale

mln. UAH

1 084



mln. USD




Gross profit

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mln. USD




Gross margin





Profit before interest, taxes, and amortization (EBITDA)

mln. UAH




mln. USD




Margin  before deprecetion, taxes and financial items





Operating profit (EBIT)

mln. UAH




mln. USD




Operating margin





Net profit 

mln. UAH




mln. USD




Net margin










Average rate $







Peter Chernyshov, Chief Executive at Slavutich, Carlsberg Group: "The results of the first half-year are positive to our company. The company's market share is increasing in spite of significant rise of prices for resources, unfavourable weather conditions and growing inflation. Successful introduction of a number of innovation projects, as well as the launch of new products in different segments, including the segments where our company did not exist before, allowed us to increase our sales and to enlarge the market share. However, the main tendency in the beer market in the first half-year is the slowdown of the grow rates in spite of positive anticipations and expectations".

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